time to read 3 minutes

It’s payday for SoftBank, courtesy of UberINTL

It’s payday for SoftBank, courtesy of Uber

SoftBank got a real big check after it sold USD 2b worth of shares in the ride-hailing app Uber (UBER). As Uber’s shares have recently been on the rise, the Japanese lender rode the wave and sold 38 million shares, for USD 53.46 each. However, it still remains the California-based company’s main shareholder with a 10% stake.

SoftBank, which had invested quite a lot in Uber previously, suffered a blow when Uber’s value dropped back in 2019, and again when the ride-hailing firm’s revenue fell due to the impact of the lockdown restrictions that have been in place since last year.

why it matters
On one hand, the demand for hired transportation has fallen since the beginning of the coronavirus pandemic, but on the other hand, there has been a boom in food deliveries as people remain at home. Since Uber plays in both fields, its share price eventually rose. Perhaps SoftBank thought this was the peak price it could get for its shares of Uber for the foreseeable future? Either way, SoftBank took advantage and called to say takeout's on them tonight.